Zijin Mining Succeeds Acquiring Nevsun

Development News
Nevsun to be acquired for $1.4bln by Chinese Zijin Mining
Zijin Acquires 276,820,575 Shares of Nevsun, representing approximately 89.37% of the total issued and outstanding Nevsun Shares on a fully diluted basis.


Nevsun Resources Ltd. (TSX: NSU) (NYSE AMERICAN: NSU) (“Nevsun”) and Zijin Mining Group Co. Ltd.(SH:601899, SEHK:2899) (“Zijin”) announces that Zijin has been successful in its offer to purchase all of the issued and outstanding Nevsun common shares for C$6.00 per share (the “Offer”).

The number of Nevsun common shares (the “Nevsun Shares”) tendered as at the deadline of 5:00 pm (Eastern Standard Time) on December 28, 2018, totals an aggregate of 276,820,575 Nevsun Shares (the “Deposited Shares”), representing approximately 89.37% of the total issued and outstanding Nevsun Shares on a fully diluted basis.

All of the conditions to the Offer, as amended by the notice of variation dated December 5, 2018, have been satisfied or waived. Zijin, through its subsidiary, has taken up all of the Deposited Shares and will pay the depositary the aggregate consideration of $1,660,923,450 for the Deposited Shares within three business days.

Chen Jinghe, Chairman of Zijin, comments,

“We are very pleased to have acquired Nevsun and will continue with the company’s strong focus on safe, efficient and sustainable mining practices. Zijin has significant expertise in mining construction, operations and management, and strong innovation capabilities. We will also work with our partner in Eritrea to further extend the life of the Bisha mine and explore for new deposits. At the Timok Project in Serbia we intend to rapidly develop the Upper Zone and bring it into production as soon as possible.”

Peter Kukielski, CEO and a director of Nevsun added,

“On behalf of Nevsun’s Board of Directors, I would like to thank our stakeholders, partners and our management team for achieving this excellent outcome for Nevsun and its stakeholders.”

Mandatory Extension

In addition, pursuant to applicable Canadian securities laws, Zijin has extended the period shareholders of Nevsun have to tender their shares under the Offer by 10 days to 5:00 pm (Eastern Standard Time) January 7, 2019 (“Expiry Time”).

Shareholders who tender their Nevsun Shares in the extended period will receive the same C$6.00 per share which will be paid within three business days of the Expiry Time.

Zijin has provided notice of extension to the depositary, Computershare Trust Company of Canada effective December 28, 2018.

There can be no assurance that Zijin will further extend the Offer after the Expiry Time, and Nevsun shareholders are encouraged to tender as soon as possible to receive their consideration in a timely manner.

About Zijin Mining Group Co. Ltd.

Formed in 1993, Zijin is based in Fujian, China and is a leading global mining company specializing in gold, copper, zinc and other mineral resource exploration and development. It manages an extensive portfolio, primarily consisting of gold, copper, zinc, and other metals through investments in China and overseas across nine countries.

Listed on the Shanghai Stock Exchange and the Hong Kong Stock Exchange, Zijin has a market capitalization of approximately US$10 billion.